Treasury Board President Anita Anand tasked federal government ministers with finding government spending cuts worth $15.4 billion by the deadline of October 2.

Anand's spokesperson said the government wants to refocus unspent funds on essential services such as healthcare and does not anticipate any layoffs in the public service.

Monica Granados explained that the savings would meet a commitment in this year's federal budget to reduce total government spending by $14.1 billion from 2023 to 2028, and by $4.1 billion annually thereafter.

The liberals pledged to cut discretionary spending on government consulting, professional services, and travel by 15 percent or $7.1 billion over five years.

The government also promised to save $7 billion over four years in operations and transferring payments.

Anand’s message to ministers also requested that they engage with crown corporations in their portfolios to find similar savings targets.

Anand added, "I ask you to engage with the staff within your portfolio as soon as possible to provide leadership in achieving our government's goal of sound fiscal and economic oversight."

The government stated in its 2023 budget that similar restrictions on crown corporation spending would result in savings of $1.3 billion over four years and $450 million annually thereafter.

Granados noted that the initiative also pertains to ensuring a better allocation of public servants and funds toward government priorities, such as the clean economy, and that the cuts are not expected to lead to federal job losses, aside from the natural attrition of government staff or their redeployment.

However, Chris Aylward, President of the Canadian Public Service Alliance, the largest union for the federal public sector in the country, stated that the proposed cuts and review are being rushed, indicating that there hasn’t been enough transparency and that his union was not consulted.

He added in a statement on Tuesday, "The government needs to halt these cuts until a comprehensive government review of employment and service needs is conducted with bargaining agents involved throughout the process, and it is time for the government to work with bargaining agents to prioritize community needs by ensuring that the public service workforce meets the real, objective demand for programs and services."

Aylward speculated that cutting $15 billion would either lead to cuts in services for Canadians or in the public workforce itself.

NDP Leader Jagmeet Singh said at a press conference that while there are areas where the government could spend taxpayer money more effectively, he is concerned that the liberals will have to cut essential services and programs.
Singh added, "I am worried that at a time when people are already under significant pressure, these cuts could mean cuts to things Canadians need, such as our healthcare, social services, and social safety net," noting that the government could reinvest money it spends on outsourcing contracts.

When asked at a press conference on Tuesday whether he would support $15 billion in cuts to the government budget and where the money would come from, Conservative Leader Pierre Poilievre said that the Trudeau government cannot be trusted to find savings.